Questions & Answers

What if I worked in a reciprocal state (Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia)?

Pennsylvania has reciprocal agreements with Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia. Generally, under these agreements, one state won't tax a resident of the other state on income that's subject to employer withholding, like wages. However, miscellaneous and non-employee income (such as business income) may still be taxable to the reciprocal state.

Pennsylvania Resident Working in Reciprocal State
If you're a Pennsylvania resident working in one of these states, your compensation is taxable to Pennsylvania, not the reciprocal state. Your employer should withhold Pennsylvania tax on your Form W-2(s). If your employer doesn't withhold Pennsylvania tax, you may be required to make Pennsylvania estimated payments.

If your employer doesn't withhold Pennsylvania tax, you must report your compensation as taxable income to Pennsylvania and pay the tax. You can then file a return in the other state, as a nonresident, and receive a refund of the state tax withheld.

You can't claim the Pennsylvania Resident Credit for Taxes Paid to Another State for any tax you paid, or your employer withheld, and paid to the reciprocal state.

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